Essays on the U.S. Housing Market and the Credit Market - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Essays on the U.S. Housing Market and the Credit Market write by Chuanlei Sun. This book was released on 2012. Essays on the U.S. Housing Market and the Credit Market available in PDF, EPUB and Kindle.
Essays on Household Finance and Credit Markets
Essays on Household Finance and Credit Markets - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Essays on Household Finance and Credit Markets write by Albert Zevelev. This book was released on 2015. Essays on Household Finance and Credit Markets available in PDF, EPUB and Kindle. The US housing boom was accompanied by a rise in mortgage leverage. The subsequent bust was accompanied by a rise in foreclosure. This paper introduces a dynamic general equilibrium model to study how leverage and foreclosure affect house prices. The model shows how foreclosure sales, through their effect on housing supply, amplify and propagate house price drops. A calibration to match the bust shows consumption and housing need to be sufficiently complementary to fit the data. Since leverage plays a key role in foreclosure, a regulator can reduce systemic risk by placing a cap on leverage. Counterfactual experiments show that in a world with less leverage, the same economic shock leads to less foreclosure and less severe, shorter busts in house prices. A 90% cap on loan-to-value ratios in 2006 predicts house prices would have fallen 12% rather than 18% as in the data. The regulator faces a trade-off in that less leverage means less housing for constrained households, but also fewer foreclosures and less severe busts in house prices. A regulator with reasonable preference parameters would choose a cap of 95%.
Essays in Housing Markets and Financial Fragility
Essays in Housing Markets and Financial Fragility - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Essays in Housing Markets and Financial Fragility write by Deeksha Gupta. This book was released on 2018. Essays in Housing Markets and Financial Fragility available in PDF, EPUB and Kindle. This dissertation is motivated by the housing crisis of 2008. It consists of three chapters. In the first chapter, "Too Much Skin-in-the-Game? The Effect of Mortgage Market Concentration on Credit and House Prices," I propose a new theory to help explain the housing crisis. During the housing boom, a small number of institutions--the government-sponsored enterprises (GSEs) and a few banks--held most of U.S. mortgage risk. I develop a theory in which such concentration of mortgage exposure can explain features of the housing crisis. I show that large lenders with many outstanding mortgages have incentives to extend risky credit to prop up house prices. An increase in concentration can lead to a boom with worsening credit quality and a subsequent bust with widespread defaults. In the second chapter, "Concentration and Lending in Mortgage Markets," joint with Ronel Elul and David Musto, we attempt to test the theory described in the first chapter. We provide evidence that concentration in mortgage markets can create perverse lending incentives. We exploit variation in the size of the GSEs' outstanding mortgage exposure across MSAs. Using a loan-level dataset, we provide evidence that the GSEs were more likely to engage in high-risk activities in areas where they had a large exposure to outstanding mortgages. We also provide evidence that this relationship is driven by an incentive to keep house prices high. In the final chapter, "Housing Booms and the Crowding-Out Effect," joint with Itay Goldstein, we study the effect that investment in real estate assets has on the economy. We develop a theory in which housing price booms can sometimes lead to a crowding-out of corporate investment. We show that an increase in real estate prices does not necessarily increase aggregate investment even when firms actively use real estate assets as collateral to borrow against and invest the proceeds in positive NPV projects. We argue that at times, it can be optimal to decrease the price of housing rather than to support high housing prices to stimulate the economy and characterize when this is the case.
Housing Markets and the Economy
Housing Markets and the Economy - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Housing Markets and the Economy write by Karl E. Case. This book was released on 2009. Housing Markets and the Economy available in PDF, EPUB and Kindle. Based on the work of Karl "Chip" Case, who is renowned for his scientific contributions to the economics of housing and public policy, this is a must read during a time of restructuring our nation's system of housing finance.
Race and Default in Credit Markets
Race and Default in Credit Markets - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Race and Default in Credit Markets write by Michael A. Stegman. This book was released on 1996-07. Race and Default in Credit Markets available in PDF, EPUB and Kindle. A research & commentary on the critical policy issue of whether or not racial discrimination exists in the home mortgage lending industry. A collection of essays on this topic by experts such as John Yinger, Stephen Ross, & George Galster. Also includes commentaries on mortgage performance & housing market discrimination, default rates & their place in the controversy, & the role of FHA data in the lending discrimination discussion. Graphs, charts.
